7. Which of the following is NOT a temporary account? a Unearned Revenue. b. Salary Expense C interest Revenue d. Consulting Expense. 8. Independent auditors express an opinion on the: a. Compliance of financial statement to GAAP. b. Accuracy of financial statement. c. Soundness of a company's future. d. Quality of a company's management. b. Cash 9. Somerset Leasing RECEIVED $12,000 for 24 months rent in advance. How should Somerset record this transaction? a Prepaid rent 12.000 Rent expense 12,000 12.000 Uneamed revenue 12.000 c. Interest expense 12.000 Interest payable 12,000 d. Salaries expense 12.000 Salaries payable 12,000 10. An example of a contra asset account is a. Depreciation expense b. Accounts receivable c. Accumulated deprecation d. Sale revenue 11. Which of the following elements are reported in income statement? | Revenues and Gains II Expenses and Losses III Liability a. I and II only. b. I only. c. ll only d. I, II, and III. 12. Which of the following elements is an increase in retained earnings arising from a company's ongoing major or central operations? Revenues b. Gains Expenses d. Losses 13. Revenue is generally recognized when realized or realizable and earned. This statement describes the a. Consistency characteristic. b. Matching principle. c. Relevance characteristic. d. Revenue recognition principle.
